The auto asset-backed securities market has seen a revival in the last week after nearly a month of no new issuances, according to presale reports released by S&P Global and Moody’s Investors Service.
Hyundai Capital America, for one, brought $1.15 billion of prime auto loan receivables to market in its first deal of the year. Nissan Motor Acceptance Corp. also brought its first deal to market with a $750 million issuance backed by prime, fixed-rate auto loan receivables.
Meanwhile, CarMax issued its second deal of the year, injecting $800 of prime auto loan receivables. Toyota Financial Services, too, issued its second transaction of the year, amounting to $850 million of prime auto receivables, or $1.25 billion if upsized.
All deals are expected to close April 29, and were not issued with the help of the Federal Reserve‘s term asset-backed securities loan facility (TALF). It is expected that the auto industry may not see its first securitization backed by TALF until the beginning of the third quarter, analysts previously told AFN. TALF was first introduced during the credit crisis in November 2008 to alleviate the financial squeeze on lenders and provide additional sources of liquidity.